Shlomo Karpen pays $3M for mixed-use in Bedford Stuyvesant

Shlomo Karpen through the entity 52 Marcy LLC paid $3 million to Eleizer Schwimer, Moses Guttman, and Maguire Capital Group through the entity Maguire Bkln VI LLC for the three-unit mixed-use building (S9) at 325 Franklin Avenue in Bedford Stuyvesant, Brooklyn.
The deal closed on June 28, 2023 and was recorded on June 30, 2023. The property has 4,050 square feet of built space and 3,364 square feet of additional air rights for a total buildable of 7,422 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $740 and the price per buildable square foot is $404 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The seller acquired the property on May 16, 2022, at a valuation of $2.8 million. The signatory for Eleizer Schwimer, Moses Guttman, and Maguire Capital Group was Eleizer Schwimer. The signatory for Shlomo Karpen was Shlomo Karpen.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Shlomo Karpen had purchased any other properties and sold one property in one transactions for a total of $5 million over the past 24 months.
The seller Eleizer Schwimer purchased eight properties in four transactions for a total of $13.9 million and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Eleizer Schwimer, head officer and Moses Karpen, agent. The business entities are Waterfront Management and Maguire Bklyn IX LLC.

The property

The mixed-use building with 3 residential units in Bedford Stuyvesant has 4,050 square feet of built space and 3,364 square feet of additional air rights for a total buildable of 7,422 square feet according to a PincusCo analysis of city data. The parcel has frontage of 30 feet and is 82 feet deep with a total lot size of 2,474 square feet. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $469,000. The most recent loan totaled $11.2 million and was provided by Lightstone Group on May 16, 2022.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $650 in OATH penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Bedford Stuyvesant, The bulk, or 35 percent of the 54.7 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 29 percent of the space. In sales, Bedford Stuyvesant has 2.8 times the average sales volume among other neighborhoods with $981.5 million in sales volume in the last two years and is the 4th highest in Brooklyn. For development, Bedford Stuyvesant has 3.2 times the average amount of major developments relative to other neighborhoods and is the 5th highest in Brooklyn. It had 3.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space. There were three pre-foreclosure suit filed among other mixed-use buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of six of the 18 commercial properties representing 43,674 square feet of the 73,221 square feet. The largest owner is Simen Neiman, followed by New Start Development and then Moses Guttman.
On the tax block, there were two new building construction projects totaling 17,928 square feet. The largest is a 16-unit, 9,380 square-foot residential (R-2) building submitted by Moses Neuman with plans filed February 27, 2015 and it has not been permitted yet. The second largest is a 8,548 square-foot business (B) building submitted by Isaac Bryon with plans filed October 29, 2013 and it has not been permitted yet.

The majority, or 54 percent of the 73,221 square feet of built space are walkup buildings, with mixed-use buildings next occupying 27 percent of the space.

The seller

The PincusCo database currently indicates that Moses Guttman owned at least 17 commercial properties with 81 residential units in New York City with 69,065 square feet and a city-determined market value of $21.5 million. (Market value is typically about 50% of actual value.) The portfolio has $5.5 million in debt, borrowed from Piermont Bank. Within the portfolio, the bulk, or 49 percent of the 69,065 square feet of built space are walkup properties, with mixed-use properties next occupying 18 percent of the space. They are all located in Brooklyn.
The PincusCo database currently indicates that Eleizer Schwimer owned at least eight commercial properties with 40 residential units in New York City with 32,387 square feet and a city-determined market value of $9.3 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 52 percent of the 32,387 square feet of built space are walkup properties, with B1 properties next occupying 14 percent of the space. They are all located in Brooklyn.
The PincusCo database currently indicates that Maguire Capital Group owned at least six commercial properties with 22 residential units in New York City with 25,455 square feet and a city-determined market value of $12.3 million. (Market value is typically about 50% of actual value.) The portfolio has $5.7 million in debt, borrowed from Maspeth Federal Savings and Loan Association. Within the portfolio, the bulk, or 42 percent of the 25,455 square feet of built space are mixed-use properties, with walkup properties next occupying 41 percent of the space. The bulk, or 58 percent of the built space, is in Brooklyn, with Manhattan next at 42 percent of the space.

The buyer

The PincusCo database currently indicates that Shlomo Karpen owned at least 32 commercial properties with 392 residential units in New York City with 552,700 square feet and a city-determined market value of $93 million. (Market value is typically about 50% of actual value.) The portfolio has $212 million in debt, with top three lenders as G4 Capital Partners, Kearny Bank, and Bethpage Federal Credit Union respectively. Within the portfolio, the bulk, or 47 percent of the 552,700 square feet of built space are elevator properties, with industrial properties next occupying 32 percent of the space. The bulk, or 83 percent of the built space, is in Brooklyn, with Queens next at 17 percent of the space.

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